7 Awesome Options when You Need Cash Now – Without Borrowing!
You don’t always need to borrow money to cover emergency expenses. When people need cash now–regardless of why–many turn to payday loans, credit cards, auto title loans, second mortgages and loan products from banks and credit unions, but each of these fixes increases your total indebtedness and could trigger a downward spiral of debt.
Taking on more debts than you can afford is the quickest way to get into even more financial trouble and leave you to deal with the fallout from predatory lenders, high interest rates, aggressive collection practices and damage to your credit rating when you can’t pay all your bills.
Wrecked credit can result in higher interest rates for loans, denials of mortgages and car financing and negative responses to employment and rental applications. That’s why it’s always best to avoid using credit cards and loans when you need cash now because credit always comes with a price sticker.
Fortunately, in today’s digital communications environment, there are many awesome and lucrative ways to earn extra cash without borrowing money at high interest rates. According to a Money.cnn.com report, most families need cash now occasionally because 50 percent of all Americans–even highly salaried earners–have savings that will only last three months or less while 17 percent have zero savings and live paycheck-to-paycheck.
Options for Getting Money when You Need Cash Now Without Incurring Debt
You should always exhaust any available options when you need emergency cash before considering loan products of any kind. Having cash flow problems is a common problem that affects even people who earn high incomes because they usually carry more debt. The statistics for cash flow in average American families are abysmal. According to an article posted at Esquire.com, 56 percent of Americans don’t have more than $1,000 in combined checking and savings accounts. About 38 percent of consumers maintain some credit card debt by failing to pay their full balances each month. Borrowing money should be a last resort after considering the many other ways you can raise money. Seven of the best include the following strategies:
1. Recycling Materials
There are many ways to recycle, and you can recycle your own materials and supplement them with discarded assets in your neighborhood. For example, collecting aluminum cans is a good way to supplement your cash. If you know your neighborhood well, you can ask bars, restaurants and other businesses to save their cans for you to collect.
Recycling scrap gold, metal, cans and bottles–once considered the last resort of desperate people–is now considered a worthy, green endeavor according to HBR.org. The first step to responsible recycling is repurposing old, unwanted items. Try to repair, restore and sell any reusable clothes, small appliances and other materials. You can sell them at yard sales or by advertising them on free classified sites like Craigslist.
You can also auction or sell items on eBay, and you only pay a commission if they sell. You can supplement your inventory by looking for items at yard sales and thrift stores so that you can build a business that generates regular income.
2. Selling Natural Assets
Everyone has natural assets that can be sold or leveraged for cash during emergencies. These assets include hair, blood, plasma, sperm and eggs, which are commonly sold to generate cash. Sperm donations can generate around $100 per donation, eggs can generate a whopping $8,000 for young, healthy egg donors and selling your plasma can generate a cool $300 each month according to a report posted at Theguardian.com. Surrogacy–where legal–can generate $45,000 over nine months, but be sure to check whether paid surrogacy is legal in your jurisdiction. Other opportunities exist for selling mother’s milk, human placenta, blood marrow and hair.
3. Working a Second or Part-Time Job
Today, anyone can earn extra money in thousands of ways by working online, starting an Internet business, doing odd jobs or taking a second or part-time job. Each of these options is a great way to earn extra money when you need cash now to survive the holidays, pay off credit cards, build a nest egg or provide a cushion for easier living.
You can get money when you need cash now by doing odd jobs in the neighborhood, running a landscaping business or working over the Internet in your spare time. There are writing jobs, companies that pay for photographs, online teaching jobs where you can share skills and other options to earn money just by completing a few tasks according to a report at USnews.com.
4. Saying Bye to Your Four-Wheeled Money Pit or Joining Uber
Giving up that second car while you pay down your debts is an excellent way to reduce expenses and generate extra cash when you need money now. Depending on your situation and available public transportation, you might even sacrifice driving altogether, which can generate a tremendous cash windfall. Imagine the savings you’ll realize by getting rid of car payments, insurance bills, gas and oil expenses, parking fees and routine maintenance and repair costs.
Face it–private transportation is an expensive luxury for most people, and many families own more vehicles than they absolutely need or can comfortably afford. If you can’t give up the late model car, consider using your vehicle to provide car service at Uber.com or another paid ride-sharing service.
5. Withdrawing Money from Emergency Funds or Retirement Accounts
When you need cash now, you can always withdraw money from retirement accounts or emergency funds, but a report at CNBC.com doesn’t recommend this practice because only one out of 10 people qualifies for hardship withdrawal, so penalties and taxes for nonexempt parts of your funds must be paid to the government.
Americans have begun putting more money into their retirement accounts that recently average balances of record-setting $92,900, a figure that has been rising steadily. Nevertheless, it’s your money, and it makes more sense to use some of it now instead of spending an enormous amount on interest, fees and the administrative costs involved with taking out certain loan products.
You’ll pay a 10 percent fee for withdrawing from a 401(k) before turning 59-and-a-half, and you’ll owe taxes if your contributions were tax-exempt according to a report at Goodfinancialcents.com. The report suggests several ways to avoid paying penalties, which include medical emergencies, disability and paying insurance premiums if you’re unemployed.
6. Seeking Financial Help from Your Employer
Many employers will advance you funds against your next paycheck without charging interest because you’ve already earned the money. However, you should use this option–if available–cautiously. Asking for frequent advances could foster a bad impression of irresponsibility and an inability to handle money. Some employers might suspect substance abuse issues. Another possible trouble spot is that–regardless of how much your employer is willing to advance you–your next check will be substantially lower than usual. If possible, ask your boss to recover larger advances in installments.
7. Selling, Pawning or Auctioning Unwanted Belongings
You can always sell or auction items that you no longer need or have outgrown or those collectibles that you no longer interest you. Jewelry is particularly lucrative and holds its value. If the items are precious keepsakes, you can pawn them for cash, but you should make sure that you can afford to redeem your items before pawning them.
You can sell items through classified ads online, marketplace platforms like eBay and Amazon or at pawn shops or local consignment shops. The-office.com recommends that you become an educated seller before selling jewelry. Know the value of gemstones and precious metals, and clean your jewelry before trying to sell it.
When Your Business Needs Cash Now Due to a Seasonal Downturn or Investment Opportunity
If you own a business and find that you need cash now to cover expenses during a slump or to take advantage of an opportunity, getting a business loan can be a hassle. According to Behalf.com, peer-to-peer lending agencies require businesses to operate at least two years before they qualify for loans, and business loa forms average processing times of a week or longer. Principal owners need FICO scores of 660 to get approved and 720 to get the terms.
Business can sell their invoices in a process called factoring to generate cash. Another option is to take out a merchant cash advance loan, which actually works like factoring. However, you must agree to let the lender process your credit card transactions, and your “loan” is automatically deducted from your credit card sales and payments.
Liquidity Is Never a Guarantee
A Federalreserve.gov PDF report warns that liquidity is never even for government-sponsored investments. Liquidity risks at commercial banks could compromise even those families who have adequate cash reserves. If the stock market collapses or a natural disaster strikes, there are no guarantees that you’ll have access to your funds. During the financial crisis, banking industry mismanagement forced millions of families to lose their homes and/or retirement savings. Liquidity and safety are never , so it’s always wise to develop other options to protect you and your family during cash flow emergencies.
When There Are No Good Choices or Time-Sensitive Needs Preclude Borrowing
Few people enjoy liquid savings and assets that are easily converted into cash, but when they need cash now, they should always consider the repayment terms, their incomes and current obligations before turning to emergency loan products or credit cards. If you can’t comfortably afford to repay a given loan from your current income, you should find another alternative. The previous options for generating extra cash are just a few of the available ways to earn money instead of borrowing it. These methods can also be used to pay off high-interest debts so that you have more disposable income. You can use these methods in a pinch to pay off short-term loans if you need cash now and don’t have other options except to borrow funds. Learn more about what to do to earn cash and manage your expenses at the PersonalMoneyStore.com.